State Dept's Preliminary 21st Century Plan to Review Existing Regs

(The White House recently posted 30 preliminary plans for “21st Century” regulations that were submitted by government agencies, including the State Department’s. See ITT’s Online Archives or 05/31/11 news, 11053130, for BP summary.)

State Dept Creates Website to Provide Access to Info on Retrospective Analysis

The State Department says that the principal focus of this Plan is to build on the work currently underway and expand its engagement with all of its stakeholders. The State Department has created a Rules and Information Collection website, linked to the Department’s home page. The website provides access to available information and represents an effort to engage the public more dynamically, solicit input, and increase collaboration for an on-going retrospective analysis. The website is available here.

Initial List of Candidate Rules for Review Over the Next Two Years

The State Department provides an initial list of candidate rules for review over the next two years. The Department will review each rule and determine whether or not it should be revised. Some of the rules listed were identified during a public comment period, and/or the responsible bureau had identified them for review prior to the development of this Plan. The following are the trade-related rules that appear on the list:

• Revision of 22 CFR Part 121, International Traffic in Arms Regulations (ITAR), the United States Munitions List (USML). Each category (Category I-XX) will be the subject of a separate rule.
• New licensing exemption for certain replacement parts and incorporated articles (22 CFR 123.28 and 126.19).
• New licensing exemption for transfer of defense articles to dual national and third-country national employees (22 CFR 126.18).
• New licensing exemption for the temporary export for personal use of chemical agent protective gear (22 CFR 123.17).
• New electronic submission of registration payments (22 CFR Parts 120, 122, and 129).
• Clarification of records maintenance requirement (22 CFR 122.5).
• Discontinue submissions of form DSP-53 (22 CFR 123.4).
• Change in requirements for the return of licenses (22 CFR 123.22).
• Revision of agreements procedures (22 CFR Part 124).
• Update information on sanctioned countries (22 CFR 126.1).
• Clarify and reflect new policy for exports made by or for the U.S. Government (22 CFR 126.4).
• Revise brokering regulations (22 CFR Part 129).
• Revise definition of “defense service” (22 CFR 120.9, 120.38, 124.1, and 124.2).
• New regulations implementing the Australia and UK defense cooperation treaties (22 CFR Parts 120, 123, 124, 126, 127, and 129).
• Establishment of a general program license, which would allow multiple exporters to collaborate with foreign partners on U.S. government programs (22 CFR Part 123).
• Revise/establish definitions of/for “technology,” “specially designed,” and “public domain” (22 CFR Part 120).
• Revision of Missile Technology Control Regime annex (22 CFR Part 121)

Overall Effect of Rules Will be to Simplify Reg Structure for Exporters of Defense Goods, Services

The overall effect of the rules listed above will be to simplify the regulatory structure for exporters of defense articles and services. Most importantly, this would be affected by clarifying what is covered by the USML. At the moment, almost all USML categories are being reviewed, with the goal of revising them into a “positive” list that describes controlled items using objective criteria, rather than broad, open-ended, subjective, or design intent-based criteria frequently found on the current USML.

Certain licensing exemptions will reduce the burden for exporters by eliminating the requirement of submitting an export license application. Other changes that will reduce the burden to the public include the electronic payment of registration fees, and, for those licenses decremented electronically through the Automated Export System, the discontinuation of the requirement to send in expired or exhausted licenses.

¹On January 18, 2011, the President issued EO 13563, "Improving Regulation and Regulatory Review," which requires retrospective review of significant rules. EO 13563 requires each Executive Branch agency to develop a preliminary plan to periodically review its existing regulations to determine whether any regulations should be modified, streamlined, expanded, or repealed so as to make the agency’s regulatory program more effective or less burdensome in achieving its regulatory objectives. The plans were due to the Office of Management and Budget by May 18, 2011. (See ITT’s Online Archives or 01/19/11 news, 11011915, for BP summary.)

(See ITT’s Online Archives or 05/06/11 news, 11050639, for BP summary of the State Department requesting comments on its plan.)